Volkswagen and Vulcan Green Steel are partnering to expand the use of green steel in production.
“Decarbonizing supply chains is a decisive factor for the Volkswagen Group on the road to carbon neutrality,” said Dirk Grobe-Loheide, Member of the Board of Management of the Volkswagen. “We want to achieve this goal by 2050 at the latest, and using low-carbon steel is an important step in this direction.”
Vulcan Green Steel will produce automotive grades and other high-strength steels in the Duqm economic zone of Oman beginning 2027.
Natural gas will be used in the Duqm operations initially and later the operations will be converted to green energy to reduce carbon emissions by 70 percent, once the transition is complete.
Currently, the facility is in the construction phase and is expected to be operational in 2026. The volumes of low-carbon steel Volkswagen expects to order will cover about 300,000 tons of Europe’s annual steel requirements.
The Jindal Steel Group, to which Vulcan Green Steel belongs, is a diversified industrial conglomerate with steel, iron ore mining and energy operations as well as activities in India, Oman, Africa and Australia.
The fully vertically integrated production of flat steel in Oman will extend from mined iron ore to own generation of green energy and production of green hydrogen to secondary metallurgy of the finished steel.
High wind speeds and strong, continuous solar radiation in Oman are ideal conditions for generating green power from wind and solar energy, a crucial factor for the production of low-carbon steel using green hydrogen, according to the press release.
